Ethereum Layer-2 Network Abstract by Pudgy Penguins to Shut Down

The Abstract network, owned by Igloo Inc., has announced its closure on December 15. Users must move their assets through the Migration Hub or the native bridge with a three-hour delay, otherwise, they will become inaccessible. At the time of the announcement, the network held approximately $76 million. Launched in January 2025, Abstract became the second Ethereum layer-2 network to announce its closure in recent days, following Blast, which closed on October 2. During its operation, Abstract processed over 325 million transactions, recorded trading volume on decentralized exchanges of over $6 billion, and created more than 4 million Abstract Global wallets. The network also generated over $40 million in revenue for the ecosystem. Abstract is a ZK-rollup, a second-layer network that aggregates transactions and verifies them on Ethereum using zero-knowledge proofs.

The reasons for the closure include unstable growth, limited market liquidity, insufficient institutional activity, and a smaller budget compared to competitors. Igloo CEO Luca Netz indicated that the business model, focused solely on consumer cryptocurrencies, proved unsustainable. Igloo funded Abstract for about 18 months and lost "tens of millions of dollars." "We could no longer justify withdrawing funds from the Pudgy Penguins business," Netz added. He also noted that after losses in the eight-figure range, the team could have launched a token or conducted an ICO, but ultimately decided not to. Now Igloo will focus resources on Pudgy Penguins and PENGU. Previously, through partnerships with Red Bull Racing and Disney, the network attracted over 400,000 users, and more than 144 applications were deployed on it.

According to Igloo, in the last 24 hours, the network earned about $3,900 in fees, while applications on Abstract generated about $39,000 in revenue. Blast, which closed a few days earlier, once attracted over $2 billion in deposits, and its backers included the Paradigm fund. The Abstract administration has already warned users to be cautious, as fraudulent websites or messages from individuals posing as project representatives may appear.